No Financial Education.
This is probably the number one reason why many financially challenged people ruined their financial lives. Think about it: who teaches you how to manage your finances? The answer is “no one”. The conventional school we attend does not teach us, neither does business school nor our boss. Since everybody knows that more than 95% of the human population are not rich, just like our neighbours next door are probably as blind as we might be about finance.
Rely on family and friends for finance choices
Strangely enough, not many people are too concerned about their finances, thinking that other family members will take care of it for them. This explains why most of them juggle from their parents to their employers and maybe the government too. They wrongly assume that a “responsible” boss or government would help take care of their finances. That’s not the thing. It never was. Well, in your dreams, maybe!
In reality, your personal finances are your own responsibility. You can’t rely on loved ones to take care of them when they do not even want to take care of themselves? Also, perhaps the best government can provide the guidance and opportunities but still you have to take care of your OWN finances using professional help that we provide here at Intelli360.
Expensive “free” advice.
Lousy “free” advice can not only come from your own family members who have never “been there, done that”, but they can even come from misleading professionals some times.
Be careful of such people because in many cases, their advices are more costly than that – and you are probably going to pay for it. As thumb rule, seek advice only from people who are truly knowledgeable and know what they are doing.
Self-explanatory, isn’t it? Like any addiction or bad habit, greed empties our minds of our logic and this is the main reason some people are throwing their life savings into the “get rich quick schemes” or in the stock market without professional guidance. Don’t follow their mistakes.
Investing simply without knowing what you are doing is financial suicide. That is like driving a car without knowing how and where to go! Give no priority to personal finance management. Even though many people think that personal finance management is important, they are not treating it just as important, but too lightly in fact. By the time they realize, it is often too late. They are either out of time or money or even both. Sad, isn’t it?
Lack of desire to learn and invest in financial education.
Another irony is that many others do not want to learn how to manage their finances because they are afraid of being labelled as “too materialistic”. How misguided are these people. Learning how to manage your own finances never expects you to ignore other important aspects in life and never will. Instead, it makes you a more matured and responsible person.
You will quickly realize that mastering your finances means mastering a bigger portion of the rest of your life, because whether you like it or not, almost everything you do today are related to money in one way or another.
No clear or specified financial goals.
A wise man once said that if you are not planning to go anywhere, you are guaranteed to stay there for life. And that seems to be the case with many people today. By the way, “making lots and lots of money” is not clear enough a goal. And more often, that is a fantasy rather than a realistic goal worth achieving. And because many people do not have proper financial goals, they just wander aimlessly and drift through life.
“Following the crowd” mentality.
Some call it the “herd” mentality, too. Having said that a large percentage of the population is not rich and that wealth is in the hands of the very few, you are probably not doing anything right more than 90% of the time especially when it comes to your finances and also especially if you are taking other people’s tip or advice.
A quick tip to get around this is to NOT do what the majority of the crowd is doing, or do exactly the opposite. For example, if everyone is buying stocks, you do not. Instead, you sell. And when everyone starts selling, you buy.
That would make you a contrarian at times, but why join everyone else in jumping down from a tall building when you can take a lift down to the ground floor?
However, in reality, everyone tends to follow the crowd and try to be “in”. We are, after all, social creatures, and we would like to know and be in what is the latest trend and be cool in our own ways.
Nothing wrong with being in the latest trend but believe us, when it comes to managing your finances – it is never cool to be broke, even though all of your friends are and they are making fun of you for not joining them.
So if you want to avoid these disasters, do get in touch with us to plan and organise your finances and become a wealthy person.